Union Bank of the Philippines announced recently that it has just secured a license from the Bangko Sentral ng Pilipinas (BSP) to operate as a virtual asset service provider (VASP) — any natural or legal entity that exchanges, holds, safe-keeps, sells, converts, or transfers virtual assets on behalf of another natural or legal entity.
As such, it gets the distinction of being the first universal bank in the Philippines to operate as a VASP.
The license grant also comes right on time as the Aboitiz-led bank plans to roll out a new feature in its services by the fourth quarter of this year that will allow customers to buy and sell Bitcoins directly from its mobile app.
IMAGE CREDIT: https://bankero.com.ph
UnionBank president and CEO Edwin Bautista said the milestone represents a significant leap forward for the listed financial institution as it continues to revolutionize the banking landscape.
“By obtaining this license, we are not only paving the way for even more groundbreaking opportunities. We are also enhancing our digital capabilities and further transforming the way our customers interact with us,” Bautista said.
These virtual asset exchange services previously were accessible only to randomly selected users of the app through a limited virtual asset license.
New features of the mobile app
UnionBank’s new mobile app service is touted to provide a convenient and secure platform for trading cryptocurrencies through a well-established and trusted financial institution.
This will also allow bank clients to manage both traditional banking and digital assets within a single mobile platform.
UnionBank chief technology and operations officer Dennis Omila said that the bank’s commitment to its clients is the driving force behind every innovation. “Through these new services, we are empowering them to be able to navigate this new space with confidence,” he said.
For her part, Cathy Casas, UnionBank head of emerging technology group, said, “In this era where change is constant, our pursuit of this license isn’t just about staying current, but about being future-proof and future-ready. The financial landscape is evolving at an unprecedented pace, and we want to be at the forefront, ensuring that we are equipped to meet the evolving needs of our clients.”
The adoption of blockchain technology has been integral to UnionBank’s future-proofing strategy, and the bank has been actively exploring potential use cases, including cryptocurrencies, to adapt to evolving customer needs and financial trends.
In 2019, UnionBank launched the country’s first bank-operated, two-way virtual currency ATM located in its digital branch ‘The ARK’ in Makati City, which allows users to buy and sell cryptocurrencies.